Risk Control and Mitigation

Risk control and mitigation in credit risk management involve identifying potential financial losses from borrowers who may default on loans. Organizations assess these risks using strategies like setting credit limits, requiring collateral, monitoring borrower performance, and diversifying their loan portfolios. By implementing these measures, they aim to reduce the chances of loss and protect their financial stability. Essentially, it's about taking proactive steps to prevent issues and manage potential problems before they impact the organization's bottom line.